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Property prices, mortgages, inflation: What’s going to happen next?

Top of mind for many homeowners and landlords these days is inflation and how it is impacting the real estate market and property prices. It’s an important topic for many people and, therefore, worth taking the time to dive deeper into what’s unfolding and what the future holds.

You likely have many questions you want to be answered. For instance, will house prices crash? Interest rates and inflation, how high will they go? Here’s all you need to know about property prices, mortgages, inflation, and what’s going to happen next. We don’t know for sure but this is what we believe.

Is the 18-Year Property Cycle Broken?

Most would say and assume that, yes, the 18-year cycle is broken. Should we still have faith in it? In the most important sense, the answer is no that everything will not fall apart and crash. We may get another dip now. It’s stretched a bit, but broken, no. If days and months turn into a year or two then maybe you could say the 18-year property cycle is perhaps broken. However, property prices are increasing at a rapid rate. As far as next year, property prices will likely go up. Lawmakers are highly motivated to turn the situation around. The real question should be, is the 18-year cycle as useful as it should be?

Will House Prices Crash?

The short answer here is, no, house prices won’t crash. But will they fall in the short term? A double-digit fall would be a crash and we’d be wrong on this. It may vary in different parts of the country. People are going to be sitting and waiting to see what happens. The rate of growth will slow down, however. We were in the middle of a boom until all this kicked off so you need to look at the big picture. Overall, property prices will be up.

Interest Rates & Inflation: How High Will They Go?

Yes, they will go high, but how much higher is the question? The markets overreacted and now it’s priced down. While inflation is high now, people’s expectations of inflation are starting to calm down too. Inflation has been higher than expected and therefore interest rates started increasing. Inflation should come down and interest rates shouldn’t get out of hand, generally speaking. The government doesn’t want to crash the economy.

Mortgages, Investing & What Should You Be Doing?

Interest rates are pretty low but mortgage rates are quite high. Keep your options open and if you can, do nothing at all. If you can let things settle down then do so.

Remember that we could be wrong. However, we do have some tips to offer and consider. We want you to decide for yourself. As far as investing goes, if you’re just starting your portfolio, take into account the long-term. The rental market is very strong. Unless you sell it doesn’t matter – but don’t sell when the market crashes. It’s important to take calculated risks because if the market doesn’t crash then you will be missing out on opportunities.

If you agreed to buy something and are in the process of buying, what should you do? You likely are buying something within your means anyway. There will always be uncertainty. It probably won’t make much of a difference if you were already in a good position to buy.

Dartford Property Specialists

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Whether you need to sell, buy, rent or let a property in Dartford, we can help you. Contact Land Estates, Dartford’s leading estate agent.

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Steven Hall Mortgage Advisor

Steven Hall

Hi, my name is Steve and I am a Mortgage & Protection adviser covering the south-east of England.


I have personally been involved in the Mortgage and protection industry for over 15 years, with 13 of those as an Adviser.

Here’s just some of the types of scenarios we can help with:
• Residential Purchases and Re-mortgages
• Buy to Let Purchases and Re-mortgages
• Let to Buy Re-mortgages
• Help to buy mortgages
• Right to buy mortgages
• Shared Ownership Mortgages
• Capital raising for home improvements or deposit on investment properties

I am always more than happy to discuss any enquiries you may have. We offer a very personal service and pride ourselves on taking the time to find the perfect solution for your requirements.

So how does it work? We normally start with an initial call that lasts 5-10 minutes to establish if your expectations are realistic and if we are likely to be able to help you. If that goes well we can then look to set up a full mortgage appointment. Normally this is via a video meeting. Our aim then is to give you an idea of the likely costs, how much you can borrow and ultimately working towards providing you with something called a ‘decision in principle’. A decision in principle is a certificate from a prospective lender that confirms that your credit history is acceptable and how much you can borrow. This will give you the confidence that you are in a position to make an offer on a property and ensure that you are taken seriously by an estate agent and the vendor. Note that many estate agents will not even allow a viewing until you have a decision in principle. Lastly, once you find a property and your offer is accepted, we then guide you through the whole mortgage application process with the aim of making it as simple as possible for you.

THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES

We typically charge a fee of £399 payable at the point of application for a purchase or on completion for a re-mortgage, however this will be dependent on your personal circumstances.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Expert Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales No.9617865 3 Greystones Road, Bearsted, Maidstone, Kent, ME15 8PD. Head Office: 25 Nightingale Avenue, Whitstable, Kent, CT5 4TR